Yes, Outsourcing is prohibited under Venezuelan New Labour Law as long as the contracting of third parties are made to simulate or defraud with the purpose of avoiding the application of the labor legislation.

1.         Definition of Outsourcing under the New Labour Law.

Outsourcing is understood to be the simulation or fraud committed by employers in order to distort, ignore or obstruct the application of the labor legislation. The administrative or judicial bodies have the competence to establish the corresponding liability.

Nevertheless, the contractor – defined as an entity that acts on its own behalf and executes work and services … Continue Reading